Cess and Excise Slapped on Export of Crude and Petrol, Diesel
and ATF
·
Gold
Duty back to 15%, Slash to 10.75% Reversed
·
Cess of Rs. 23,250 per tonne imposed on Crude;
Import of Crude not to be subject to this Cess
·
Special
Additional Excise Duty/Cesses Imposed on Exports of Petrol
and Diesel at the Rate of Rs 6 per litre on Petrol and Rs 13 per litre on Diesel
·
Special
Additional Excise Duty (SAED) of Rs 6 per litre Imposed on Exports of Aviation Turbine Fuel
·
NO IMPACT
OF ABOVE STEPS ON DOMESTIC FUEL PRICES
·
Customs
Duty on Gold increased from 10.75% to 15%; Step taken to help Curtail Current Account
Deficit
·
Notification
issued on 30th June 2022
Following
are the details of the Notifications issued regarding Customs duties on 30th June
2022. The details are as follows:
I
INCREASE OF CUSTOMS DUTY ON GOLD
Customs
duty on gold has been increased from 10.75% to 15%.
There has been sudden surge in imports of gold. In the month
of May, a total of 107 tonnes of gold was imported and
in June also the imports have been significant. The surge in gold imports is putting
pressure on current account deficit. To curb import of gold, customs duty has
been increased from present 10.75% to 15%.
II DUTIES/CESSES ON PETROLEUM CRUDE, HSD, PETROL AND ATF
A. PETROLEUM CRUDE
A cess of Rs
23,250 per tonne (by way of special additional excise
duty-SAED) has been imposed on crude.
Crude prices have risen sharply in recent months. The domestic
crude producers sell crude to domestic refineries at international parity prices.
As a result, the domestic crude producers are making windfall gains. Taking this
into account, a cess of Rs.
23250 per tonne has been imposed on crude. Import of crude
would not be subject to this cess.
Crude is sold by domestic producer at international parity price.
This cess will have no adverse impact,
whatsoever, on domestic petroleum products/fuel prices.
Further, small producers, whose annual production of crude in
the preceding financial year is less than 2 million barrels will be exempt from
this cess.
Also, to incentivise an additional
production over preceding year, no cess will be imposed
on such quantity of crude that is produced in excess of last year production by
a crude producer.
As stated above, this measure would not impact crude prices or
the prices of petroleum products and fuels.
B. HSD and PETROL
Special additional excise duty/Cesses
has been imposed on exports of petrol and diesel at the rate of Rs 6 per litre on Petrol and Rs 13 per litre on diesel
While crude prices have increased sharply in recent months, the
prices of HSD and Petrol have shown a sharper increase. The refiners export these
products at globally prevailing prices, which are very high. As exports are becoming
highly remunerative, it has been seen that certain refiners are drying out their
pumps in the domestic market.
In view of this, cesses equal to Rs 6 per litre on Petrol and Rs 13 per litre on diesel have been
imposed on their exports.
These cesses would apply to any export
of diesel and Petrol from the country.
As the above measure has been applied to exports, it has no implication
on domestic retail prices of HSD and Petrol.
At the same time, EXPORT POLICY condition has been imposed by
the DGFT that the exporters would be required to declare at the time of exports
that 50% of the quantity mentioned in the shipping bill has been/will be supplied
in the domestic market during the current FY.
These measures would not have any adverse impact on domestic
retail prices of diesel and petrol. Thus, domestic retail prices would remain unchanged.
At the same time these measures will ensure domestic availability of the petroleum
products.
C. AVIATION TURBINE FUEL
A special additional excise duty (SAED) of Rs 6 per litre has been imposed on
exports of Aviation Turbine Fuel.
Like HSD and Petrol, the international prices of ATF have risen
sharply. Accordingly, on the same reasoning, as stated above for diesel and petrol,
a cess of Rs 6 per litre has been imposed on exports of ATF.
This measure will not have any adverse impact on domestic prices
of aviation.
List
of Notifications issued on 30.06.2022